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1995 EDAApproved EDA Minutes Meeting //1 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 January9, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES IMPROVEMENT PROJECT NO. 505 Item 4 EDA RESOLUTION 95-01 Item 4 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 7:16 p.m. Present: Erickson, Enck, Otten, Wehling, Norby Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Wehling, seconded by Commissioner Enck, to approve the EDA minutes of December 12, 1994. Voting in favor: Enck, Wehling, Otten, Erickson; Abstained: Norby; Absent: None. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving Plans and Specifications and Ordering Advertisement for Bids for Construction of Handicapped Accessible Twin Home at 5009 Winnetka Avenue North (Improvement Project No. 505). Ms. Sarah Bellefuil, Administrative Analyst, provided background of the project including acquisition and funding. She reviewed the design plan and features of the twin home. She noted as a result of the Decembe~ 12th discussion, a gabled roof will be constructed above the garages. Substantial discussion ensued regarding the insulation standards and whether to upgrade from the minimum standards. Ms. Bellefuil stated according to the City BUilding Official, noise does not penetrate walls but actually penetrates around doors and windows. High quality doors and windows as well as caulking around door and window openings will decrease noise infiltration. EDA members expressed concern regarding possible traffic noise from Winnetka and approved the installation of a sound channel on the interior wall on the Winnetka side to dampen vibrations at a cost of $245. Commissioner LaVine Norby commented on the project's close proximity to her home and stated for this reason she will abstain from the vote. The EDA briefly discussed landscaping of the property. Remarks were made against the placement of a center strip of green space between the driveway as it is difficult to maintain. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR CONSTRUCTION OF HANDICAPPED ACCESSIBLE TWIN HOME AT 5009 WINNETKA AVENUE NORTH (IMPROVEMENT PROJECT NO. 505)." The motion for adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon the following voted in favor thereof: January 9,1995 ADJOURNMENT Erickson, Otten, Enck, Wehling; and the following voted against the same: None; Abstained: Norby; Absent: None; whereupon the resolution was declared duly Passed and adooted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjoum the meeting. All present voted in favor. The New Hope EDA adjourned at 7:37 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 January 9, 1995 Approved EDA Minutes Meeting//2 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 505 Item 4 EDA RESOLUTION 95-02 Item 4 ADJOURNMENT CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 February 27, 1995 President Erickson called the meeting of the Economic Development Authority to order at 9:16 p.m. Present: Erickson, Enck, Otten, Wehling, Norby Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Otten, to approve the EDA minutes of January 9, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving Declaration of Covenants for 7901-7909 51 st Avenue North (Improvement Project No. 505). Commissioner Enck questioned who is responsible to administer or arbitrate any disputes between homeowners. Mr. Steve Sondrall, City Attorney, stated if necessary, it would be the responsibility of the homeowners to obtain an arbitrator. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING DECLARATION OF COVENANTS FOR 7901-7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505)." The motion for adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten,. Enck, Wehling; and the following voted against the same: Norby; Absent: None; whereupon the resolution was declared duly oassed and adoot~, signed by the president which was attested to by the executive director. Motion was made by Commissioner Otten, seconded by Commissioner Wehling to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:19 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page I February 27, 1995 Approved EDA Minutes Meeting//3 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 March 13, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES "SHOP NEW HOPE" PROMOTION--IMP. PROJECT NO. 537 Item 4 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 8:16 p.m. Present: Erickson, Enck, Otten, Wehling, Norby Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of February 27, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, "Shop New Hope, City-Wide Retail Promotion. President prompted expressed Erickson prefaced the discussion by stating this idea was by the closing of the Winnetka Super Valu grocery store. He the need to promote the City's retail stores. Mr. Daniel Donahue, City Manager, explained that one of the 1995 goals of the City Council and staff is to improve communication/coordination between the City and the retail/commercial businesses in New Hope. He commented that retail businesses have told the City that the best way to assist them is to help promote their businesses on the marketing or sales side. This initiated the idea of a "Shop New Hope" City-wide retail promotion. Since the beginning of the year the City has contacted or met with the majority of owners/managers of New Hope's commercial centers and major retailers including Midland Center, Poste Haste Center, Winnetka Center, Winnetka Commons, K-Mart and New Hope Mall. The purpose of these meetings has been to inquire how the City can better assist the business/retail environment at these locations and to find out if the shopping centers and major businesses would cooperate with the City in a "Shop New Hope' promotion. It is anticipated that such a promotion would be jointly funded by the City and businesses and would educate residents about shopping opportunities in New Hope. Such a promotion could be coordinated in conjunction with Duk Duk Daze. The majority of shopping center/retail business owners and/or managers indicated that they would be very supportive of the program and would participate. Staff also has met with Key Group Advertising, Inc., the promotion company utilized by Kraus-Anderson, to discuss the City-wide retail promotion idea. Key Group indicated that they thought the idea was very progressive and forward thinking and that they would like to work with the City on the development of these ideas in the coming months. Key Group could assist in the development of a budget for the promotion and would assist in coordinating group meetings between the retailers and the City to develop the program. Several of the ideas discussed to date for the promotion include possible discounts for purchases made at local businesses or the development of a map/directory of New Hope March 13, 1995 businesses. President Erickson shared marketing ideas such as wearing buttons and conducting cash prize drawings. He noted if the City effectively advertises the campaign this year and the merchants recognize the results, there would be less need for city funding in subsequent years. Commissioner Enck emphasized the need to have a means of measuring the promotion's results. Concerns were raised regarding whether there is sufficient time to have the promotion in place by July. It was noted that the promotion company believes it can be accomplished to coincide with Duk Duk Daze. Commissioner Wehling expressed a desire to be involved in establishing the promotion. Ms. Kathy Hemken, 1995 Duk Duk Daze Chair, was recognized. She expressed support of conducting the proposed campaign in conjunction with Duk Duk Daze. She reported that the Committee hired the "White Side Walls" for the band at Duk Duk Daze. This year's festival will be held July 14, 15, and 16, 1995. Mr. Donahue stated any dollars expended for this idea would be economic development dollars, not property tax dollars. Staff will meet with Key Group and the merchants to draft a preliminary plan and report back to the EDA hopefully by March 27. Commissioner Enck suggested forming a steering committee comprised of merchants, staff, City Council, and the Key Group. IMPROVEMENT PROJECT NO. 505 Item 5 President Erickson introduced for discussion Item 5, Resolution Authorizing Publication of Notice and the Holding of a Public Hearing Regarding Sale of 7909 51st Avenue North (Improvement Project No. 505). EDA RESOLUTION 95-03 Item 5 Commissioner Enck introduced the following resolution and moved its adoption: 'RESOLUTION AUTHORIZING PUBLICATION OF NOTICE AND THE HOLDING OF A PUBLIC HEARING REGARDING SALE OF 7909 51ST AVENUE NORTH {IMPROVEMENT PROJECT NO. 505}." The motion for adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: None; Abstained: Norby; whereupon the resolution was declared duly oassed and ado~ted, signed by the President which was attested to by the executive director. ADJOURNMENT: Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to adjourn the meeting. Ali present voted in favor. The New Hope EDA adjourned at 8:30 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 March 13, 1995 Approved EDA Minutes Meeting //4 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 March 27, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 474 Item 4 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 8:01 p.m. Present: Erickson, Enck, Otten, Wehling, LaVine Norby Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, French Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of March 13, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding City Owned Property at 7528 42nd Avenue North (Improvement Project 474). Mr. Daniel Donahue, City Manager, stated in 1993 the City acquired the Foremost property at 7528 42nd Avenue North for future redevelopment. As part of the purchase agreement the City agreed to lease the property to Foremost, Inc. for a two-year period. The terms of the lease required Foremost to pay all real estate taxes, insurance premiums, utilities for the operation, repair/maintenance/upkeep of the building, etc. The City has had a difficult time in getting Foremost to pay the taxes on the property. One unlawful detainer action was initiated which resulted in the payment of the 1994 real estate taxes. The lease expires on July 19, 1995, and the lease payment due on February 1 st was the pro rata share of the 1995 taxes ($10,010.00) which has not been paid. The City was in the process of initiating another unlawful detainer action when we learned that, as of March 3rd, Foremost was a defunct company. There is a new entity, Phoenix Mfg. Corporation, interested in acquiring the assets (lease) and the acquisition is contingent upon the successful assignment and extension of the existing lease terms to the new entity/corporation. Mr. Donahue stated the new company would like to enter into a similar arrangement with the City and would pay all taxes due. Hennepin County has informed staff that the City will be required to pay the market rate taxes through the end of 1995 ($20,000 +) whether the building is vacant or occupied. The new company intends to get the company operating again and would like to enter into an agreement through December 31, 1995, under the same terms. As the lease is currently written, it cannot be assigned or renewed without March 27, 1995 the consent of the EDA. Northland Financial Group will be requesting the EDA's consent on both issues. Northland has indicated that if the lease is not extended per the original terms, that they will not pursue the creation of the new entity. Also, the bank that holds the title to the machinery in the building has guaranteed that they will pay the first half- year's taxes. Commissioner Enck asked if there would be any assurances that the City would receive the money from the new enterprise. Mr. Donahue stated most of the funds would be paid up front but as of yet no final arrangements have been made. Commissioner Enck asked what financial commitments and collateral would be committed to the City to ensure that the taxes were paid through December 31, 1995. Mr. William Marceau, representing Northland Financial Group Inc., was recognized. He indicated he began working with Mr. Fredendall last fall. His company specializes in corporate finance and restructures. After 60 days he informed Mr. Fredendall that it would be best to seek a buyer of the business with Mr. Fredendall staying on to manage the business. Through efforts of Northland Financial Group, Phoenix Mfg. Corporation is interested in purchasing Foremost, Inc. Mr. Marceau responded to Commissioner's Enck question regarding assurance of rent payments. He indicated there would be no collateral as it would be like any other lease arrangement. The lease would be month to month, quarterly, or semi-annual payments, depending on the City's need to offset the tax liability. Mr. Marceau stated the new entity would bring enough business to double its previous size. A five-year projection reflected a very viable opportunity. Commissioner Enck referred to the abutting properties, and inquired whether Phoenix Manufacturing might be interested in utilizing the properties for expansion purposes. Mr. Marceau stated with the EPA problems on the site, he is hesitant to address the issue at this time. Mr. Steve Sondrall, City Attorney, stated to ensure that the City does not become liable for property taxes payable in 1996, it needs to negotiate a new lease after the July 19 termination date. He recommended that the City receive the 1994 rent in one lump sum especially since the rent equates to the taxes due. Mr. Sondrall mentioned the terms of a new lease agreement and indicated this will be presented at the first meeting in April. New Hope EDA Page 2 March 27, 1995 IMP. PROJECT 537 Item 5 PUBLIC HEARING IMP. PROJECT.505 Item 6 CLOSE HEARING Item 6 MOTION IMP. PROJECT 505 Item 6 IMP. PROJECT 505 Item 7 The EDA reported fa~0tably on extending the lease to Phoenix Manufacturing Corporation. Commissioner Otten suggested updating the petitioner regarding the condition of the additional lot for potential development. President Erickson introduced for discussion Item 5, Update Regarding "Shop New Hope" City-Wide Retail Promotion (Improvement Project 537). Mr. Donahue indicated a committee meeting was held resulting in many ideas and suggestions. He asked for a report by Commissioner Wehling. Commissioner Terri Wehling indicated the Committee decided to hold two meetings in April. The merchants emphasized the need for a theme and to make this an on-going event rather than just a one-time event. The owners of the Shopping Centers were willing to contribute funds to add to the seed money provided by the City. Commissioner Norby pointed out that the landlords/owners must be financially supportive of the campaign as merchants alone may not be capable of financial contributions. President Erickson indicated this campaign is an attempt to make residents more aware of local businesses. President Erickson introduced for discussion Item 6, Public Hearing - Resolution Authorizing and Approving Sale of 7909 51 st Avenue North to T. Jeff Bangsberg (Improvement Project No. 505). Mr. Donahue stated the public hearing is tonight but staff is recommending that the EDA hold and close the public hearing but not act on the Resolution until the April 10th EDA Meeting, which will be the same meeting that the contract for construction of the twin home is awarded. This will avoid approving a purchase agreement to sell one unit prior to awarding the contract for construction. Motion by Commissioner Otten, seconded by Commissioner Wehling, to close the public hearing on the sale of 7909 51st Avenue North. All present voted in favor. Motion carried. Motion by Commissioner Enck, seconded by Commissioner Otten, to postpone action on the resolution until the April 10 meeting. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 7, Resolution Amending Declaration of Covenants for 7901 7909 51st Avenue North (Improvement Project No. 505). Commissioner Norby noted her intent to abstain from voting on the item only because it is visible from her home. New Hope EDA Page 3 March 27, 1995 EDA RESOLUTION 95-04 Item 7 ADJOURNMENT Commissioner Otten introduced the following resolution and moved its adoption: "RESOLUTION AMENDING DECLARATION OF COVENANTS FOR 7901 - 7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505)." The motion for the adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Enck, Otten, Wehling; and the following voted against the same: Norby; Absent: None; whereupon the resolution was declared duly passed and adooted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Wehling, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:31 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 4 March 27, 1995 Approved EDA Minutes Meeting #5 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 505 Item 4 EDA RES. 95-05 Item 4 IMP. PROJECT 505 Item 5 EDA RES. 95-06 Item 5 5000 WINNETKA New Hope EDA Page 1 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 April 10, 1995 President Erickson called the meeting of the Economic Development Authority to order at 8:51 p.m. Present: Absent: Staff Present: Erickson, Enck, Otten, NOrby Wehling Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Otten, to approve the EDA minutes of March 27, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving and Ratifying Awarding Contract for the Construction of Handicap Accessible Twin Home at 7901-7909 51st Avenue North (Improvement Project 505). Commissioner Otten introduced the following resolution and moved its adoption: "RESOLUTION APPROVING AND RATIFYING AWARDING CONTRACT FOR THE CONSTRUCTION OF HANDICAP ACCESSIBLE TWIN HOME AT 7901 - 7909 51ST AVENUE NORTH". The motion for the- adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Enck, Otten; and the following voted against the same: Norby; Absent: Wehling; whereupon the resolution was declared duly passed and adooted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 5, Resolution Authorizing and APPr0ving Sale of 7909 51st Avenue North to T. Jeff Bangsberg (Improvement Project No. 505). Mr. Bangsberg was in the audience and introduced himself. Councilmember Norby welcomed Mr. Bangsberg as a neighbor. She explained the reason she voted against the item is based on her philosophy to not vote on anything she can see from the window of her house. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING AND APPROVING SALE OF 7909 51ST AVENUE NORTH TO T. JEFF BANGSBERG". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten and upon vote being taken thereon, the following voted in favor thereof: Erickson, Enck, Otten; and the following voted against the same: Norby; Absent: Wehling; whereupon the resolution was declared duly oassed and adopted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 6, Discussion Regarding April10,1995 Item 6 IMP. PROJECT 537 Item 7 ADJOURNMENT Request for Condemnation to Provide Access to Landlocked Parcel at 5000 Winnetka Avenue North. The EDA did not favor the use of condemnation over private property to give one party an advantage over another. President Erickson advised against the City becoming involved in a dispute between two property owners. For the best interest of everyone concerned, staff was directed to encourage Mr. Hoyt to work out an agreement for access to the parcel between the current owners of the Jacobwith site. Commissioner Enck questioned whether there would be a benefit to Mr. Hoyt's property and the City to have access to 49th as opposed to Winnetka Avenue. He noted there may be some benefits to the City. He suggested referring them to a mediation service to promote dialogue and reach an amicable compromise. President Erickson introduced for discussion Item 7, Update on "Shop New Hope" City-Wide Retail Promotion (improvement Project No. 537). President Erickson reported that a meeting was held Friday, April 7, and most retailers are excited about the idea. Mr. Donahue questioned whether the EDA is comfortable with the program to date and proposed expenditures. He stated another planning meeting. will be held to work out details and finalize the proposal by the end of the month. He asked for confirmation from the EDA on the funding of approximately $32,000 emphasizing that many of the expenses will be borne on a one-time basis and will not need duplication next year. The funds will be paid from existing EDA accounts and will not be property tax dollars. Retailers will be contributing to defray the cost. Commissioner Norby questioned the likelihood of contributions. Mr. Donahue explained that an advertisement plan based of different levels of participation will be offered to retailers. The EDA unanimously expressed support of the "Shop New Hope" campaign. Motion was made by Commissioner Enck, seconded by Commissioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:00 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 April 10, 1995 Approved EDA Minutes Meeting #6 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 April 24, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 474 Item 4 MOTION Item 4 7700 42ND AVE. NO. Item 5 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 8:58 p.m. Present: Absent: Staff Present: Erickson, Enck, Otten, Norby Wehling Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Otten, to approve the EDA minutes of April 10, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Motion Approving Lease Between Phoenix Manufacturing Corporation and the EDA and Approving a Mutual Release Between Foremost, Inc. and the EDA (Improvement Project No. 474). Mr. Steve Sondrall, City Attorney, briefly updated the EDA on this issue. He stated Foremost is agreeable to the termination and release of the lease. He reported that the owner of Phoenix Manufacturing would like to negotiate certain issues of the lease. First, Phoenix Manufacturing requested permission to pay the lease in two payments rather than one. Second, the company has asked for a reclamation provision which would allow them to "gut" the building of any moveable fixtures or equipment upon lease termination. This was provided to Foremost in the previous lease, but is not included in the new lease with Phoenix Manufacturing. Motion was made by Commissioner Enck, seconded by Commissioner Otten, approving a mutual release between Foremost, Inc. and the EDA; and approving the lease between Phoenix Manufacturing Corporation and the EDA with the insertion of a reclamation provision to the lease and subject to the entire rental payment due on the commencement date of the lease. All presented voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Discussion Regarding Request by Universal Color, Inc. for GAP Financing Loan for Acquisition of and Improvements to Kuppenheimer Building, 7700 42nd Avenue North (Improvement Project No. 539). Mr. Dan Donahue, City Manager, explained that the owners of Universal Color, Inc., presently leasing space at the Autohaus site at 7709 42nd Avenue, wish to relocate to the Kuppenheimer building at 7700 42nd Avenue North. Universal Color has negotiated a purchase agreement and a financing package. However, there is a gap of $140,000 in the source of funds, and they are requesting a Iow interest loan from the redevelopment fund. President Erickson questioned the proposed interest rate for the loan. April 24, 1995 ADJOURNMENT Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, noted this would be similar to the loan provided to Autohaus back in 1991 which bears an interest rate of 1% over the prime rate. He indicated staff is seeking direction only from the EDA tonight and formal loan documents would be presented at a later date. Mr. Paul Anderson, President of Universal Color, Inc., was recognized. He explained their efforts in seeking suitable sites for relocation and the events which led to the purchase of the Kuppenheimer building. He indicated the owners were asking $550,000 for the property ($100 per square foot) and came down to $467,500. Mr. Anderson noted the property is actually worth between $375,000 to $400,000. He explained the SBA (Small Business Administration) loan program and the bank commitment for funding. Mr. Anderson reviewed the necessary improvements to the site including heavy duty cooling, new power requirement, and replacement of front window glass. Universal Color has been in business for 20 years and a corporate resident of New Hope for the last 15 years. He emphasized that they are a profitable business but it is a service business without significant assets. The business currently employs 12 full-time persons and the new location will add 5 full-time positions within the next two years. He stated the bank and the SBA would take first and second position on the real estate. He stated he and his partner have enough equity in personal real estate to personally guarantee the loan from the EDA. The EDA discussed the time table. Mr. Anderson stated the closing date is May 31, 1995. Commissioner Enck commented that the move would be good for Color Lab as well as Autohaus. He noted the importance of obtaining guarantees prior to the release of municipal corporate assets. President Erickson stated he does not believe there will be strong opposition to supporting the project, but it will be necessary to obtain the proper guarantees and documentation. The EDA directed staff to prepare an agreement for presentation on May 8, 1995. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:16 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 April 24, 1995 Approved EDA Minutes Meeting//7 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 May 8, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 505 Item 4 EDA RESOLUTION 95-06 IMP. PROJ. NO. 537 Item 5 President Erickson called the meeting of the Economic Development Authority to order at 8:20 p.m. Present: Erickson, Enck, Otten, Norby, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of April 24, 1995. Voting in favor: Erickson, Enck, Otten Norby; Abstained: Wehling; Absent: None. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving Change Order for Construction Contract for 7901-7909 51st Avenue North (Improvement Project No. 505). Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING CHANGE ORDER FOR CONSTRUCTION CONTRACT FOR 7901-7909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereof, the following voted in favor thereof: Erickson, Enck, Otten, Wehling; Abstained: Norby; and the following voted against the same: None; Absent None; whereupon the resolution was declared duly passed and adopl;ed, signed by the president which was attested to by the executive director. President Erickson introdUced for discussion Item 5, Motion Approving Letter of Agreement Between City of New Hope and Key Group Advertising, Inc. for Shop New Hope Promotion (Improvement Project No. 537). Mr. Donahue, City Manager, indicated that the EDA unofficially committed approximately $32,000 in EDA funds to support the "Shop New Hope" promotion. The agreement calls for a payment of $49,485. He stated to date the business community has sponsored $15,750. Commissioner Wehling reported that there are 67 star retailers contributing $25 each, 8 gold star ~ $500 or @ $750, and there are 6 gold plus @ $1,500. She indicated there has been a very positive response from the business community. She commented that the promotion should result in a stronger retail community, improved communications between city and commercial businesses, and an increased public awareness of local businesses. The EDA discussed the ways to measure the promotion's success and its effect on the commercial and retail community. New Hope EDA Page I May 8, 1995 MOTION Item 5 OTHER BUSINESS ADJOURNMENT It was noted that the retailers will track their sales during the promotion and there will be a follow-up communication with retailers after the promotion. Commissioner Wehling also noted that prospective tenants may be drawn to the City due to this type of pro-active approach undertaken by the City. Mr. Donahue suggested that if a community-wide survey is conducted it should include a structured questionnaire distributed only to the business community to establish quantitative data relating to their perceptions, sales, and their opinion on the value of the program. Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the letter of agreement between City of New Hope and Key Group Advertising, Inc. Voting in favor: All. Motion carried. Mr. Donahue noted part of the Shop New Hope campaign was to improve the downtown image. He illustrated "Neighborly New Hope" sketches for banners to be displayed from the light poles along 42nd Avenue. He commented that the cost for 28 poles would be approximately $12- 15,000. The banners last between 5 to 10 years. He stated the cost includes the necessary hardware from which other seasonal banners could be attached. Mr. Donahue noted the short time frame if the EDA is favorable to the banner concept and wishes to have the banners in place prior to the kick- off of the Shop New Hope campaign on June 14. Commissioner Wehling emphasized that banners provide identity and help build community togetherness. The EDA directed staff to obtain quotes for the light pole banners. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:35 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 May 8, 1995 Approved EDA Minutes Special Meeting //1 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 May 15, 1995 CALL TO ORDER ROLL CALL IMP. PROJECT 539 Item 11.1 ADJOURNMENT President Erickson called the special meeting of the Economic Development Authority to order at 8:21 p.m. Present: Erickson, Enck, Otten, Norby, Wehling President Erickson introduced for discussion Item 11.1, Universal Color GAP Loan, 7700 42nd Avenue North, Improvement Project No. 539. Mr. Dan Donahue, City Manager, distributed the report prepared by Springsted Inc. on their review of Universal Color's request for financial assistance. Mr. Paul Anderson, President of Universal Color, Inc., was recognized. President Erickson emphasized the importance of obtaining a financial guarantee for the City's investment. The EDA approved a loan for $140,000 at a rate of 8% with a 15-year amortization period and a balloon at the end of year 10. The loan approval was contingent upon both owners carrying $140,000 life insurance policies and the City taking 3rd position on the mortgage. Universal Color agreed to provide an annual $2,000 maximum retail cost donation for in- kind services to the City. Mr. Donahue stated the City Attorney will prepare the appropriate loan agreement. Motion was made by Commissioner Wehli~g,'seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:01 p.m. Respectfully submitted, Valerie Leone City Clerk CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes Meeting #8 May 22, 1995 CALL TO ORDER President Pro tern Enck called the meeting of the Economic Development Authority to order at 9:21 p.m. ROLL CALL Present: Absent: Staff Present: Enck, Otten, Norby, Wehling Erickson Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil APPROVE MINUTES Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of May 8, 1995 and May 15, 1995. All present voted in favor. Motion carried. IMP. PROJECT 539 Item 4 President Pro tern Enck introduced for discussion Item 4, Resolution Authorizing Mortgage to 7700 Partnership, L.L.P. for Property at 7700 42nd Avenue North (Improvement Project No. 539). Mr. Dan Donahue, City Manager, stated the resolution is a result of the action taken by the City Council at its May 15th Work Session. He stated the loan is for $140,000 at an 8% interest rate amortized over 15 years with a balloon payment at the end of year 10. He stated the City is taking 3rd position on the mortgage, and the owners will carry $140,000 life insurance policies. Also, Universal Color has agreed to provide an annual $2,000 maximum retail cost donation for in-kind services to the City. EDA RESOLUTION 95-08 Commissioner Wehling introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING MORTGAGE TO 7700 PARTNERSHIP, L.LP. FOR PROPERTY AT 7700 42ND AVENUE NORTH (IMPROVEMENT PROJECT NO. 539)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Norby, and upon vote being taken thereof, the following voted in favor thereof: Enck, Otten, Norby, Wehling; and the following voted against the same: None; Absent Erickson; whereupOn the resolution was declared duly passed and adopted, signed by the president 'which was attested to by the executive director. MCPP Item 5 President Pro rem Enck introduced for discussion Item 5, Resolution Approving Submission of the Minnesota City Participation Program (MCPP) Application to the Minnesota Housing Finance Agency (MHFA). Mr. Donahue indicated to participate in the program the EDA must adopt this resolution. He noted through this program the City works with local lenders in securing funds for first-time homebuyers in the City. The homebuyers must meet certain criteria to qualify for the program. EDA RESOLUTION 95-09 Item 5 Commissioner Wehling introduced the following resolution and moved its adoption: "RESOLUTION APPROVING SUBMISSION OF THE MINNESOTA CITY PARTICIPATION PROGRAM (MCPP) APPLICATION TO THE MINNESOTA HOUSING FINANCE AGENCY (MHFA)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereof, the following voted in favor New Hope EDA Page 1 May 22, 1995 OTHER BUSINESS ADJOURNMENT thereof: Enck, Otten Norby, Wehling; and the following voted against the same: None; Absent: Erickson; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Commissioner Wehling updated the EDA on the activities planned for the "Shop Neighborly New Hope" kick-off to be held the evening of June 14th. Mr. Donahue reminded the EDA of the May 23rd Twin West site tour. Motion was made by Commissioner Norby, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:32 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 May 22, 1995 Approved EDA Minutes Meeting #9 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 541 Item 4 MOTION Item 4 IMP. PROJECT 541 Item 5 MOTION Item 5 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 June 12, 1995 President Erickson called the meeting of the Economic Development Authority to order at 7:51 p.m. Present: Erickson, Enck, Otten, Norby, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of May 22, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Motion Authorizing Staff to Proceed to Negotiate with Owners to Purchase Properties at 7621 Bass Lake Road and 5559 Sumter Avenue for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Mr. Donahue, City Manager, stated the purchase prices will be determined by the appraised property value and through negotiation with the property owner. The negotiated price will be a separate matter for each property. He reiterated that the project for this area in no way forces residents to move from their homes. The EDA will only purchase homes from "willing" sellers and as they become available. He pointed out that the project is in response to property owners' requests for assistance. The Bass Lake Road extension is too narrow for adequate access by emergency vehicles. In the project's interim, some of the homes may be rented out by the City and some may be demolished. He emphasized that no decisions have been made in regard to the type of future housing development. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, authorizing staff to negotiate with owners to purchase properties at 7621 Bass Lake Road and 5559 Sumter Avenue. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Motion Authorizing Staff to Obtain Appraisals on Two Additional Properties (7609 Bass Lake Road and 5520 Sumter Avenue North) for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Subsequent to the May 8th Council Meeting, two additional property owners notified city staff of their interest in a voluntary sale. Motion was made by Commissioner Enck, seconded by Commissioner Norby, authorizing staff to obtain appraisals on two additional properties (7609 Bass Lake Road and 5520 Sumter Avenue North) for Bass Lake Road Extension Housing Redevelopment Project. All present voted in favor. Motion carried. New Hope EDA Page I June 12, 1995 BUSINESS RETENTION PROGRAM Item 6 MOTION Item 6 MARKET STUDY Item 7 New Hope EDA Page 2 President Erickson introduced for discussion Item 6, Motion Approving Participation in Phase II of the Community Partners Business Retention Program. For the past 1-1/2 years, New Hope has participated with the cities of Brooklyn Park, Brooklyn Center, and Blaine in the Community Partners Business Retention Program sponsored by the North Metro Mayors Association. The first phase of the program surveyed all industrial/commercial/retail businesses in the City regarding their needs and expectations. At the last Commission meeting, a motion was passed to transition the Community Partners Program into the Phase II stage. This six month phase will begin July 1st and will involve prioritizing recommendations, developing specific action plans, and maintenance/updating of the data base. The cost for the City to participate is $4,230.00 and is included in the 1995 EDA Budget. Commissioner Wehling inquired whether the 'Shop New Hope" promotion resulted from Phase I. Mr. Donahue indicated the Community Partners Business Retention Program heightened the EDA's awareness that there is a business/retail concern. The 'Shop New Hope' campaign was a marketing idea to bring retail businesses together. Motion by Commissioner Otten, seconded by Commissioner Wehling, approving participation in Phase II of the Community Partners Business Retention Program. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 7, Consideration of Market Study Proposal by Northwest Associated Consultants, Inc. for $9,500. Mr. Donahue stated this would be the type of study to be undertaken if the EDA wishes to be pro-active in marketing the entire Winnetka Shopping Center property, He stated the City could pursue this independently or in conjunction with the property owner, The study would provide direction to the EDA on how it should proceed in attracting viable businesses to this site. The EDA expressed concern regarding the cost and the responsibility of the shopping center owners. The City Manager was directed to approach the property owner to share the cost, The EDA discussed the grocery store space recently vacated by Super Valu. Mr. Sondrall pointed out that Super Valu has a lease with the center for the next ten years. He suggested contacting the property owner to discuss the lease provisions and determine whether it would be beneficial to pursue a the market study. Commissioner Enck commented that Super Valu is fulfilling its contractual obligations by paying the lease, and the City has no right to interfere with the lease. He expressed support if Super Valu and the property owner wish to find a better use for the property, but he does not feel City funds should be expended to subsidize a project that should be done by a property owner. Commissioner Wehling asserted that vacant space reflects poorly on June 12, 1995 OTHER BUSINESS EDA Item 8 MOTION ADJOURNMENT viability of the business community. She pointed out that the study could research reasons why the grocery store did not succeed, and the study should focus on the actual design of the center including visibility, attractiveness, accessibility, etc. She emphasized the need to encourage the owner to participate in sharing the cost of the study. Commissioner Otten remarked that cities must maintain a cooperative effort with businesses and take an active part. The EDA directed staff to seek a 50/50 cost sharing arrangement with the owner of the Winnetka Shopping Center fOr the market study. Mr. Donahue requested the addition of Item 8 to approve payment for light pole banners. He stated the payment of $14,697 is for 29 sets of banners for light poles including hardware of two brackets per pole for 28 poles. Her noted one extra set of banners was provided. Motion was made by Commissioner Wehling, seconded by Commissioner Otten, authorizing payment of $14,697 to Northcott Banners for "Neighborly New Hope" light pole banners. All present voted in favor. Motion carried. Motion was made by Commissioner Wehling, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:19 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 3 June 12, 1995 Approved EDA Minutes Meeting #10 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 June 26, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 523 Item 4 IMP. PROJECT 523 Item 5 New Hope EDA Page I President Erickson called the meeting of the Economic Development Authority to order at 8:42 p.m. Present: Erickson, Enck, Otten, Norby, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Norby, to approve the EDA minutes of June 12, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Letter of Intent Submitted by EVEANN Limited Partnership for Champion Auto Store on City-owned Parcel at 42nd and Nevada Avenues (Improvement Project No. 523). President Erickson pointed out the EDA's previous decision to discourage additional auto-oriented businesses along the 42nd Avenue corridor. Commissioner Norby inquired that the City should encourage expansion of existing businesses. She asked whether a staff member spoke to a representative of Champion Auto. Mr. Donahue replied the written correspondence was the only form of communication to date. He stated their proposal is asking the City to finance $190,000 of $200,000. Commissioner Enck commented that Champion Auto has the capacity to expand its existing facility, and if they did purchase the city-owned property it appears unlikely that they would utilize the entire parcel. Commissioner Norby expressed the need for the EDA to review its financial assistance/participation guidelines for development requests. It was agreed to discuss this at a future work session. Mr. Donahue asked the Council if it wishes to continue its policy of not considering auto-oriented uses for this property. At this time the Council chose to continue with this policy and give consideration to a proposal submitted by Gill Brothers Funeral Chapels, Inc. President Erickson introduced for discussion Item 5, Discussion Regarding Purchase Agreement Submitted by Gill Brothers Funeral Chapels, Inc. for City-owned Parcel at 42nd and Nevada Avenues (Improvement Project No. 523). Mr. Donahue stated the Gill Bros. offer is for $200,000 and the request before the City is for a Iow interest loan. June 26, 1995 IMP. PROJECT 505 Item 6 EDA RESOLUTION 95-10 Item 6 IMP. PROJECT 505 Item 7 EDA RESOLUTION 95-11 Item 7 New Hope EDA Page 2 President Erickson felt a funeral chapel would fit well in the location and noted that these businesses typically have beautiful settings (structure, landscaping, etc). President Erickson recommended that staff meet with Gill Brothers and have them present a concrete financial offer, site plan, landscaping, traffic plan, etc. at a future meeting. Commissioner Enck questioned representatives of Gill Brothers Funeral Chapels as to how they would propose the traffic pattern if the County denies direct access to 42nd Avenue. Mr. Daniel McGraw, President of Gill Brothers Funeral Chapels was recognized. He introduced Norm Cole, an architect of Miller Construction, who is available to answer technical questions. Mr. McGraw stated due to the concrete median, direct access to 42nd Avenue would serve westbound traffic only. He stated the traffic light on 42nd and Nevada provides excellent access and he is willing to work with the City and Hennepin County. Mr. McGraw commented that if the EDA is interested in the proposal he will proceed with preparation of site plans. He noted this development would have a tax value of approximately $1,000,000. Mr. Sondrall, City Attorney, reminded the EDA that Oregon Estates has a license agreement with the City which al!ows a directional sign on the southeast corner of the prOperty. Mr. McGraw did not believe the sign would create any problem as it would be near the funeral chapel's parking lot. President Erickson introduced for discussion Item 6, Resolution Approving Plans and Specifications for Landscaping at 7901/7909 51 st Avenue North (Improvement Project No. 505). Commissioner Wehling introduced the following resolution and moved its adoption: "RESOLUTION APPROVING PLANS AND SPECIFICATIONS FOR LANDSCAPING AT 790117909 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: Norby; Abstained: None; Absent: None; whereupon the resolution was declared duly passed ~ signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 7, Resolution Approving Change Order for Construction Contract for 7901/7909 51st Avenue North. (Improvement Project 505). Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING CHANGE ORDER FOR CONSTRUCTION CONTRACT FOR 790117909 51ST AVENUE NORTH {IMPROVEMENT PROJECT NO. 505)". The motion for the adoption of the June 26, 1995 5500 BOONE Item 8 EDA RESOLUTION 95-12 ADJOURNMENT foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: None; Abstained: None; Absent: Norby; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 8, Resolution Calling for a Closed meeting of the New Hope Economic Development Authority Authorized by Minn. Stat. 471.705 to Discuss Litigation/Settlement Strategy on 5500 Boone Avenue Condemnation. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION CALLING FOR A CLOSED MEETING OF THE NEW HOPE ECONOMIC DEVELOPMENT AUTHORITY AUTHORIZED BY MINN. STAT. 471.705 TO DISCUSS LITIGATION/SETTLEMENT STRATEGY ON 5500 BOONE AVENUE CONDEMNATION". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: None; Abstained: None; Absent: Norby; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made'by Commissioner Wehling, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:37 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 3 June 26, 1995 Approved EDA Minutes Executive Session CALL TO ORDER ROLL CALL 5501 BOONE AVENUE MOTION ADJOURNMENT CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 June 26, 1995 The New Hope Economic Development Authority met in executive session pursuant to due call and notice thereof; President Erickson called the meeting to order at 8:42 p.m. Present: Erickson, Enck, Otten, Norby, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald The City Attorney reported on the jury verdict of the 5501 Boone Avenue condemnation lawsuit and discussed appeal alternatives. The City Attorney recommended payment of the award. Motion was made by Commissioner Enck, seconded by Commissioner Otten, authorizing the City Attorney and staff to proceed with payment of the award and payment of the interest as calculated by the City Attorney. Voting in favor: Erickson, Enck, Otten; Abstained: Norby, Wehling. Motion carried. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned its Executive Session at 8:55 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page I June 26, 1995 Approved EDA Minutes Meeting #11 CALL TO ORDER ROLL CALL APPROVE MINUTES MARKET STUDY Item 4 MOTION Item 4 IMP. PROJECT 541 Item 5 MOTION Item 5 New Hope EDA Page I CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 July 24,1995 President Erickson called the meeting of the Economic Development Authority to order at 9:21 p.m. Present: Erickson, Enck, Otten, LaVine Norby, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Norby, seconded by Commissioner Enck, to approve the EDA minutes of June 26, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Market Study Proposal for Winnetka Shopping Center by Northwest Associated Consultants, Inc. in the Amount of $9,500. Mr. Daniel Donahue, City Manager, reported that the City has already received a $4,750 check from Building Management, Inc., managers of the Winnetka Shopping Center. Commissioner Enck explained that he will be voting against this item because he does not feel the City should contribute funding of a survey which should be the responsibility of the commercial property owner. CommisSioners Norby indicated an important part of the survey will be determining appropriate types of businesses for the shopping center. Commissioner Otten directed staff to verify that the survey will include surveying the existing tenants at the Winnetka Shopping Center. Mr. Donahus stated, he believes the survey will include this service. He noted that he offered :utilization of City Hall for meeting space. Motion was made by Commissioner Otten, seconded by Commissioner Wehling, authorizing the m~rket stt~dy proposal fo~ Winnetka Shopping Center by Northwest Associated Consultants in the amount of $9,500. Voting in favor: Erickson, Norby, Wehling, Otten; Voting against: Enck; Abstained: None. Motion carried. President Erickson introduced for discussion Item 5, Motion Accepting Appraisals and Authorizing Staff to Proceed to Negotiate with Property Owners to Purchase Properties at 7609 Bass Lake Road and 5520 Sumter Avenue for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Motion was made by Commissioner Otten, seconded by Commissioner Norby, accepting appraisals and authorizing staff to proceed to negotiate with property owr~ers to purchase properties at 7609 Bass Lake Road and .5520 Sumter Avenue for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). All present voted July 24,1995 IMP. PROJECT 541 Item 6 MOTION Item 6 IMP. PROJECT 541 Item 7 MOTION Item 7 IMP. PROJECT 505 Item 8 MOTION Item 8 IMP. PROJECT 505 Item 9 New Hope EDA Page 2 in favor. Motion carried. (Notation: Item 5 was reconsidered later in meeting). President Erickson introduced for discussion Item 6, Resolution Authorizing the Purchase of 5559 Sumter Avenue North (Improvement Project No. 541). Motion was made by Commissioner Enck, seconded by Commissioner Wehling, adopting the resolution authorizing the purchase of 5559 Sumter Avenue North (Improvement Project No. 541). All present voted in favor. Motion carried. (Notation: Item 6 was reconsidered later in meeting). President Erickson introduced for discussion Item 7, Motion Approving Quote Submitted by Evergreen Land Services Company for Relocation Services for the Bass Lake Road Redevelopment Project (Improvement Project No. 541). Mr. Steve Sondrall, City Attorney, explained that the Uniform Relocation Act requires governments to provide relocation assistance when properties are cited for a specific development motivation. The EDA questioned whether there are exceptions to the relocation law since the property owners requested the City to purchase their properties. Mr. Sondrall reported that despite this fact the City is obligated to follow the guidelines outlined in the Uniform Relocation Act. He reviewed various forms of assistance such as assisting property owners to find comparable living quarters within the area and paying potential moving expenses. The EDA expressed concern regarding its exposure and financial obligations in paying relocation costs in addition to property acquisition costs. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the $55/hour quote submitted by Evergreen Land Services Company for relocation services for the Bass Lake Road Housing Redevelopment Project and to provide an initial report of estimated costs of the project. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 8, Motion Approving Quote from Wrobleski's Lawn Service in the Amount of $8,300.60 for the Landscaping for Property at 7901/7909 51 st Avenue North (Improvement Project 541 ). Motion was made by Commissioner Wehling, seconded by Commissioner Enck, to approve quote from Wrobleski's Lawn Service in the amount of $8,300.60 for the landscaping for property at 7901/7909 51st Avenue North. Voting in favor: Erickson, Enck, Wehling, Otten; Voting against: Norby; Abstained: None. Motion carried. President Erickson introduced for discussion Item 9, Resolution Authorizing Publication of Notice and Holding a Public Hearing Regarding Sale of 7901 51 st Avenue North (Improvement Project 505). July 24, 1995 EDA RESOLUTION 95-13 MCPP APPLICATION Item 10 MOTION Item 10 IMP. PROJECT 523 Item 11 EDA RESOLUTION 95-14 New Hope EDA Page 3 Commissioner Wehling introduced the following resolution and ,moved its adoption: "RESOLUTION AUTHORIZING PUBLICATION OF NOTICE AND HOLDING OF A PUBLIC HEARING REGARDING SALE OF 7901 51ST AVENUE NORTH (IMPROVEMENT PROJECT NO. 505)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten, Enck, Wehling; and the following voted against the same: Norby; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 10, Request Approval of the Minnesota City Participation Program (MCPP) Application Commitment Agreement for Participation in the Minnesota City Participation Program. Motion was made by Commissioner Wehling, seconded by Commissioner Enck, to approve participation in the Minnesota City Participation Program. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 11, Resolution Approving Gill Brothers Funeral Chapel, Inc. Exclusive Negotiations Agreement and Authorizing the President and Executive Director to Sign (Improvement Project No. 523). Commissioner Norby inquired of the City's commitment based on this agreement. Mr. Donahue explained that the agreement provides Gill Brothers Funeral Chapel, Inc. the exclusive right to negotiate a development contract with the City for the 42nd/Nevada Avenue property over the next 90-day period. The City agrees not to market the property for 90 days. Commissioner Norby requested information regarding the practice/policy held by the City of giving iow-interest loans to profit businesses who are not already established in our community. She pointed out that Gill Brothers Funeral Chapel is well established and she has great concerns regarding their need for a Iow-interest loan when the City has already discounted the property significantly based on the appraised value. President Erickson commented that due to the shape and size of the property it is not very marketable and the City may have to offer incentives for its development. He explained that the City will recoup the funds through property taxes. Commissioner Norby indicated the potential property owner should be made aware that the selling price has already been reduced and perhaps the City should reconsider the Iow-interest loan. She als0 expressed concern regarding funeral processions on 42nd Avenue and the impact on traffic flow. Mr. Sondrall clarified that the City has not accepted the purchase agreement. Commissioner Wehling introduced the following resolution and moved its adoption: "RESOLUTION APPROVING GILL BROTHERS FUNERAL July 24, 1995 Item 11 AMENDMENT ITEMS 5 & 6 ADJOURNMENT CHAPEL, INC. EXCLUSIVE NEGOTIATIONS AGREEMENT AND AUTHORIZING THE PRESIDENT AND EXECUTIVE DIRECTOR TO SIGN (IMPROVEMENT PROJECT NO. 523)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Enck, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten, Enck, Norby, Wehling; and the following voted against the same: None; Abstained: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to reconsider Items 5 and 6. All present voted in favor. Motion carried. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to table Items 5 and 6 until August 14, 1995, which will allow the EDA to review financial obligations under the Uniform Relocation Act. All present voted in favor. Motion carried. Motion was made by Commissioner Wehling, seconded by Commissioner Norby, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:50 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 4 July 24, 1995 Approved EDA Minutes Meeting #12 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 August 14, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES IMP. PROJECT 541 Item 4 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 8:06 p.m. Present: Absent: Staff Present: Erickson, Enck, Otten, Norby Wehling Sondrall, Hanson, Donahue, Leone, Bellefuil Motion was made by Commissioner Norby, seconded by Commissioner Enck, to approve the EDA minutes of July 24, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Relocation Assistance Requirements for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Mr. Dan Donahue, City Manager, stated at the last EDA Meeting staff was directed to review the relocation assistance requirements under state and federal law and report back. He commented that the original estimated relocation costs ranged between $200,000-250,000. Minnesota Statutes requires the EDA to pay relocation assistance to displaced property owners regardless of the fact that acquisition is by negotiation and not condemnation. He stressed that the EDA will not be condemning p~operty or forcing property owners to sell but only acting as a willing buyer when property owners are willing to sell. All properties will be appraised prior to purchase. He pointed out that the EDA could offer to purchase properties based on appraised values without negotiation and in addition the seller would receive relocation benefits. Without negotiating for higher priCe~;' certain savings could be realized to offset the anticipated $200,000 relocation benefits. President Erickson expressed support for the EDA taking the fore- mentioned position for purchasing properties. Mr. Donahue mentioned that if the property owner's appraisal is higher than the EDA's appraisal, a certain amount of negotiation may be undertaken or a third appraisal may be necessary if there is a large discrepancy. Commissioner Enck reviewed the history and the fact that the City did not initiate the project but rather responded to a request from citizens. He opposed paying relocation costs which are typical expenses incurred whenever anyone voluntarily sells their home and are not an expectation of the current property owners. He asked that legislators be informed of the inequity of the relocation assistance requirements. He suggested abandoning the project and only purchasing homes as they become available. August 14, 1995 MOTION Item 4 IMP. PROJECT 505 Item 7 MOTION Item 7 EDA RESOLUTION 95-15 Item 7 New Hope EDA Page 2 Mr. Steve Sondrall, City Attorney, stated the City would be responsible to pay relocation assistance benefits in all development projects except scattered site development projects. He noted the City may choose to abandon the project as it may never materialize. In that regard it would be scattered site development rather than site specific. The EDA questioned the intent of the legislation regarding relocation assistance requirements and noted it is only reasonable in condemnation situations. Mr. Sondrall pointed out that the City could still purchase the property at 5559 Sumter Avenue on a scattered site basis since acquisition of the property is necessary in order to proceed with the City's objective to realign Sumter Avenue. Mr. Donahue recommended tabling Items 4, 5, and 6, until August 28th to allow the City Attorney and staff to present a recommendation at that time, Motion was made by Commissioner Norby, seconded by Commissioner Enck, to table discussion on EDA Agenda Items 4, 5, and 6 until August 28, 1995: Item 4: Discussion regarding relocation assistance requirements for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). Item 5: Resolution Authorizing the Purchase of 5559 Sumter Avenue North (Improvement Project No. 541). Item 6: Motion Accepting Appraisals and Authorizing Staff to Proceed to Negotiate with Property owners to purchase properties at 7609 Bass Lake Road and 5520 Sumter Avenue for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541 ). All present voted in favor. Motion carried. President Erickson introduced for discussion Item 7, Public Hearing - Resolution Authorizing and Approving the Sale of 7901 51 st Avenue North to Carey A. Luckeroth (Improvement Project No. 505). Ms. Luckeroth has signed a purchase agreement for $85,000. There was no one present to address the EDA for the public hearing. Motion was made by Commissioner Enck, seconded by Commissioner Ottan, to close the Public Hearing on Improvement Project No. 505. All present voted in favor. Motion carried. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING AND APPROVING THE SALE OF 7901 51ST AVENUE NORTH TO CAREY A. LUCKEROTH (IMPROVEMENT PROJECT NO. 505)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Ottan, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten Enck; August 14, 1995 IMP. PROJECT 505 Item 8 EDA RESOLUTION 95-16 Item 8 ADJOURNMENT and the following voted against the same: None; Abstained: Norb¥; Absent: Wehling; whereupon the resolution was declared duly passed and adooted, signed by the president which was attested to by the executive director. President Erickson introduced for discussion Item 8, Resolution Approving Change Order for Construction Contract for 7901-7909 51st Avenue North (Improvement Project No. 505. Mr. Donahue explained that excavation and soil problems necessitated additional costs for corrective action including additional excavation, extra footings, extra block, and additional sandfill. The total cost of the change order is $767, and the City will seek reimbursement by the demolition company. Commissioner Norby questioned the funding of the project. Ms. Bellefuil reported that the project was funded by: sale of the property, HOME grant funds, CDBG scattered site house funds, and EDA funds. Ms. Bellefuil invited the Council and public to an Open House of the twin home scheduled for Thursday, August 17. Commissioner Otten suggested obtaining a floral arrangement from a local florist for the Open House. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING CHANGE ORDER FOR CONSTRUCTION CONTRACT FOR 7901-7909 51 ST AVENUE NORTH TO CAREY A. LUCKEROTH {IMPROVEMENT PROJECT NO. 505). The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon, the following voted in favor thereof: Erickson, Otten Enck; and the following voted against the same: None; Abstained: Norby; Absent: Wehling; whereupon the resolution was declared duly oassed and adooted, signed by the president which was attested to by the executive director. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:32 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 3 August 14, 1995 Approved EDA Minutes Meeting #13 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 August 28, 1995 CALL TO ORDER ROLL CALL APPROVE MINIYrES IMP. PROJECT 523 Item 4 MOTION Item 4 IMP. PROJECT 541 Item 5 EDA RESOLUTION 95-17 Item 5 President Erickson called the meeting of the Economic Development Authority to order at 7:32 p.m. Present: Staff Present: Erickson, Enck, Otten, Norby, Wehling Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of August 14, 1995. Voting in favor: Erickson, Enck, Otten, Norby; Absent: None; Abstained: Wehling. Motion carried. President Erickson introduced for discussion Item 4, Discussion Regarding Financial Assistance Request by Gill Brothers Funeral Chapels, Inc. (Improvement Project No. 523). Motion was made by Commissioner Enck, seconded by Commissioner Otten, to table discussion regarding financial assistance to Gill Brothers until later in meeting when a representative of Gill Brothers may be present. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 5, Resolution Repealing the Bass Lake Road Housing Redevelopment Project No. 541. Councilmember Enck remarked that he does not feel the EDA can justify spending $350,000 in relocation costs. He asked staff to convey his concerns of the hardship placed on cities which are required to comply with the federal Uniform Relocation Assistance Act for voluntary property acquisitions. Mr. Dan Donahue, City Manager, indicated the resolution repealing the project states that excessive development costs and the requirement to pay relocation expenses on voluntary property acquisition is the basis for the project cancellation. Further, he stated action for EDA Items 6 and 7 are incorporated in the resolution. Specifically, it revokes the pumhase agreement for 5559 Sumter Avenue and it rejects the appraisals for 7609 Bass Lake Road and 5520 Sumter Avenue. Therefore, adoption of the resolution will eliminate any need for further action on these two agenda items which were tabled at the last meeting. The resolution clarifies that cancellation of the project does not terminate the EDA's policy of acquiring sub-standard housing on a scattered site basis and permits the acquisition of properties within the project area despite its cancellation. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION REPEALING THE BASS LAKE ROAD HOUSING REDEVELOPMENT PROJECT NO. 541". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, Norby, Wehling; and the following voted against the same: None; Absent: None; whereupon the New Hope EDA Page 1 August 28, 1995 resolution was declared duly passed and adopted, signed by the President which was attested to by the Executive Director. IMP. PROJECT 541 Items 6 & 7 Due to action taken in Item 5, no action was necessary on the following two items: Item 6: Resolution Authorizing the Purchase of 5559 Sumter Avenue North (Improvement Project No. 541); and Item 7: Motion Accepting Appraisals and Authorizing Staff to Negotiate with Property Owners to Purchase Properties at 7609 Bass Lake Road and 5520 Sumter Avenue for Bass Lake Road Extension Housing Redevelopment Project (Improvement Project No. 541). IMP. PROJECT 523 Item 4 President Erickson brought off the table Item 4, Discussion Regarding Financial Assistance Request by Gill Brothers Funeral Chapels, Inc. (Improvement Project No. 523). Mr. Donahue reported that the proposal has not been discussed with staff yet. He recommended against the EDA approving a loan request until the private sector is tested. Mr. Dan McGraw, President of Gill Brothers Funeral Chapels, Inc., was recognized and responded that they have tested the private market for f'mancing and a financing package was prepared by Miller Funeral Home Design and Construction. He stated they are in the process of securing financing in the commercial market and have found that a 15-year loan at 9% interest is typical. He stated one option for CitY assistance would be for the City to buy down that rate. President Erickson informed Mr. McGraw that more definitive figures are necessary. He instructed Mr. McGraw to meet with city staff to develop a proposal to be presented to the EDA at a later meeting. Commissioner Norby called attention to the fact that the property was appraised at $250,000 which Gill Brothers would like to purchase for $200,000. She also pointed out that the City is being asked to relocate the storm sewer at a cost of $30,000. Commissioner Norby acknowledged the business will be a desirable addition to the community, but she expressed concern r~garding the City financing the project. Mr. McGraw remarked that he is hopeful that an agreement can be achieved as he believes New Hope is an impressive communitY. MOTION Item 4 Motion was made by Commissioner Enck, seconded by Commissioner Norby, to table discussion regarding financial assistance to Gill Brothers until the September llth EDA Meeting. All present voted in favor. Motion carried. Motion was made by Commissioner Web_ling, seconded by Commissioner Otten, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 7:45 p.m. Valerie Leone CitY Clerk New Hope EDA Page 2 August 28, 1995 Approved EDA Minutes Meeting//14 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Septeanber 11, 1995 C~LTOO~ER ROLLC~L APPROVE MINUTES IMP. PROJECT 519 Item 4 EDA RESOLUTION 95-18 Item 4 OTHER BUSINESS ADJOURNMENT President Pro tem Enck called the meeting of the Economic Development Authority to order at 8:11 p.m. Present: Absent: Staff Present: Enck, Otten, LaVine Norby, Welding Erickson Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Welding, to approve the EDA minutes of August 28, 1995. All present voted in favor. Motion President Pro tem Enck introduced for discussion Item 4, Resolution Authorizing Letter of Agreement for Design Services for 6073 Louisiana (Improvement Project No. 519. It was noted that this will be a similar structure to the project recently constructed at 51st and Winnetka. The EDA acknowledged the attractiveness of the completed construction project. Mr. Donahue indicated the design services will be obtained through Equal Access Homes, and the twin home design will be brought back to the EDA for approval prior to the construction bidding process. Commissioner Welding introduced the following resolution and moved its adoption: "RESOLUTION AUTHORIZING LETTER OF AGREEMENT FOR DESIGN SERVICES FOR 6073 LOUISIANA (IMPROVEMENT PROJECT NO. 519)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten and upon vote taken thereon the following voted in favor: Enek, Otten, Norby, Welding; and the following voted against the same: None; Absent: Erickson; whereupon the resolution was declared duly passed and adopted, signed by the President which was attested to by the Executive Director. Commissioner Welding questioned the property for sale on 49th Avenue and whether the City should purchase and build a similar project there. Mr. Donahue explained that the site has soil problems. Motion was made by Commissioner Otten, seconded by Commissioner Welding, to adjourn the meeting. Ail present voted in favor. The New Hope EDA adjourned at 8:13 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 1 September 11, 1995 Approved EDA Minutes Meeting//15 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 September 25, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES 7609 BASS LAKE ROAD PROPERTY Item 4 MOTION Item 4 New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 8:16 p.m. Present: Staff Present: Erickson, Enck, Otten, LaVine Norby, Wehling Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of September 11, 1995. All present voted in favor. Motion carried. ' President Erickson introduced for discussion Item 4, Consideration of Huebner Purchase Agreement Offering to Sell Property at 7609 Bass Lake Road for $78,500. The EDA considered the fact that the recent appraisal valued the property at $65,000. Since the proposed housing project for this area has been cancelled by the EDA, acquisition of the property by the City is no longer vital to the promotion of a public purpose. President Erickson questioned whether a lower price could be negotiated. Mr. Steve Sondrall, City Attorney, pointed out that this is a proposal 'made by a property owner for the sale of the property and the EDA has no obligation to do anything. By taking no action it would be considered as a no vote and the proposal would be rejected. Ms. Sharie Huebner, 7609 Bass Lake Road, was recognized. She indicated they purchased the property 3 years ago for $78,500 on a contract for deed. The loan payoff amount is $71,800. Ms. Huebner stated the market value is $70,000. Ms. Huebner maintained that the asking price o~ $78,500 is not unreasonable. Ms, Huebner stated she has been in contact with .Edina Realty but has pgstponed any transaction until a decision is reached by the City. She stated she needs at least $3,000 above the payoff amount. Under a program with Edina Realty, they would allow Ms. Huebner credit of $80,000 to be utilized toward purchase of another property. Mr. Steve Sondrall, City Attorney, pointed out that Edina Realty is in a better position to offer a higher purchase price than the City. Commissioner Enck explained why the housing project was cancelled. The EDA reviewed the $65,000 appraisal on the property which was conducted by BCL Appraisals, Inc. and considered authorizing a second appraisal by another appraiser. Councilmember Enck recommended that Ms. Huebner sell the property on tho open market since the EDA is unable to meet her'asking price. Motion was made by Commissioner Enck, seconded by Commissioner Otten, to reject the purchase agreement offer for 7609 Bass Lake Road. All present voted in favor. Motion carried. September 25, 1995 FINANCIAL ASSISTANCE Item 5 Discussion Regarding Guidelines for Financial Assistance to Businesses. Mr. Donahue explained that the City's present policy is a collection of policies. He emphasized that every development project is different. President Erickson pointed out that a flexible policy is more effective than a rigid policy. He noted it is used selectively and he prefers to retain consideration on a case-by-case basis. Commissioner Enck questioned whether the policy is legally adequate to handle denials. If so, he agreed with continuing to consider development proposals on a case-by-case basis. IMP. PROJECT 523 Item 6 Discussion Regarding Development Agreement with Gill Brothers Funeral Chapels, Inc. (Improvement Project No. 523). Mr. Donahue reviewed the proposai stating it would be a *pay as you go" tax increment financing project. The arrangement would be for the EDA to reimburse the developer for eligible costs from the tax increment received from the property after it is developed as a funeral chapel. Costs eligible for reimbursement could be up to $387,806. Commissioner Norby spoke regarding the competitive environment and expressed reservation about funding issues. Mr. Sondrall explained that the project is risk-free to the EDA since the project's eligible costs which are reimbursed are based only on the increment which is generated. He stated the question before the EDA is how much assistance is warranted or necessary to get the property developed. Commissioner Enck communicated his hesitancy to approving the $387,000. Mr. Donahue recommended a maximum subsidy of $150,000 spread over ten years. The consensus of the EDA was to authorize the $150,000 subsidy to Gill Brothers Funeral Chapels and authorize staff to prepare necessary documents. RENTAL HOUSING Item 7 Motion Approving a Request for Proposals for Special Needs Rental Housing. MOTION Item 7 Motion by Commissioner Wehling, seconded by Commissioner Norby, approving the request for proposals for special needs rental housing. All present voted in favor. Motion carded. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:57 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 2 September 25, 1995 Approved EDA Minutes Meeting//16 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 OctOber 9, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES TIF DISTRICT Item 4 EDA RESOLUTION New Hope EDA Page 1 President Erickson called the meeting of the Economic Development Authority to order at 7:02 p.m. Present: Erickson, Enck, Otten, Norby, Wehling (arrived at 7:03 pm) Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Enck, to approve the EDA minutes of September 25, 1995. Voting in favor: Erickson, Enck, Otten, N0rby; absent: Wehling. Motion carried. President Erickson introduced for discussion Item 4, Resolution Approving 1995 Amendment to Master Modification to Redevelop Plans and Tax Increment Financing Plans and Requesting the Approval of the City Council. Mr. Donahue, City Manager, explained that this item pertains to item 7.1 on the Council agenda which is a public hearing to consider approving the 1995 amendments to the master modification to the redevelopment plans and the tax increment financing plans. The item is on the EDA agenda as well since procedurally, the EDA needs to make a recommendation to the City Council on the modifications. The resolution states that the modification serves the original goals and purposes of the City and HRA by redeveloping property in the City in order to prevent or reduce blight, blighting factors and the causes of blight by providing public facilities which will be of benefit to all residents of the City. He stated the plan would be amended to include two additional properties; namely, the ice arena property (49th and Louisiana); and the Winnetka Elementary School site and adjacent recreational fields. By modifying the plan, if the City does future developments on either property and the developments meet requirements under state law, the City could spend excess tax increment funds. At this time there is a proposal for expanding the ice arena site; however, this has not been approved by the City. He emphasized that the City has no current plans for the Winnetka Elementary School site. He explained that the City does not intend to proceed with any development on the Winnetka Elementary site unless the City has the School District's full cooperation. It is possible that the closed building could be utilized for a future community center or other programming needs for the City. He reiterated that by modifying the plan, it will allow the City the availability of spending excess tax increment funds on future projects. Commissioner Enck introduced the following resolution and moved its October 9, 1995 95-19 Item 4 IMP. PROJECT 523 Item 5 EDA RESOLUTION 95-20 Item 5 SUSPENDED MEETING RECONVENED MEETING IMP. PROJECT 519 Item 6 EDA RESOLUTION 95-21 Item 6 New Hope EDA 'Page 2 adoption: "RESOLUTION APPROVING 1995 AMENDMENT TO MASTER MODIFICATION TO REDEVELOPMENT PLANS AND TAX INCREMENT FINANCING PLANS AND REQUESTING THE APPROVAL OF THE CITY COUNCIL". The motion for the adoption of the foregoing resolution was seconded by Commissioner Otten and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, Norby, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly oassed and adooted, signed by the President which was attested to by the Executive Director. President Erickson introduced for discussion Item 5, Resolution Relating to Redevelopment Plan 85-2: Approving Redevelopment Contract with Gill Brothers Funeral Chapels, Inc. (Improvement Project No. 523). Mr. Kirk McDonald, Management Assistant/Community Development Coordinator, explained that the contract would provide Gill Brothers Funeral Chapels, Inc. $150,000 in 'pay-as-you-go" tax increment financing assistance for their project on the city-owned property at 42nd and Nevada Avenues. The contract states that upon completion of the project, the EDA will reimburse the developer up to $150,000 for eligible costs such as site improvements, land acquisition, etc. The contract outlines that wage and job goals must be met to receive the assistance. Commissioner Enck asked that the record reflect the fact that the EDA supports the agreement since the development meets the overall master plan for 42nd Avenue. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION RELATING TO REDEVELOPMENT PLAN 85-2; APPROVING REDEVELOPMENT CONTRACT WITH GILL BROTHERS FUNERAL CHAPELS, INC." The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, Norby, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adooted, signed by the President which was attested to by the Executive Director. The EDA meeting was suspended at 7:10 p.m. to conduct the HRA Meeting and the remainder of the Council Meeting. The EDA reconvened at 8:21 p.m. President Erickson introduced for discussion Item 6, Resolution Approving Plans and Specifications and Ordering Advertisement for Bids for Construction of Handicap Accessible Twin Home at 6073-6081 Louisiana Avenue North (Improvement Project No. 519). Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING PLANS AND SPECIFICATIONS AND ORDERING ADVERTISEMENT FOR BIDS FOR CONSTRUCTION OF HANDICAP ACCESSIBLE TWINHOME AT 6073 LOUISIANA AVENUE NORTH IMPROVEMENT NO. 519" The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, October 9, 1995 Norby, Wehling; and the following voted against the same: None; Absent: None; whereupon the resolution was declared dUly oassed and adopted, signed by the President which was attested to by the Executive Director. IMP. PROJECT 549 Itam 7 President Erickson introduced for discussion Item 7, Discussion Regarding Acquisition of McBrady Property at 7621 Bass Lake Road (Improvement Project No. 549). Mr. Donahue stated the property is a large parcel located at the end of the Bass Lake Road Extension. He stated the City has been working with the property owner since January regarding the property. The City's appraisal is $78,000 and the McBrady's appraisal is $119,000. After negotiations, the property owner is willing to sell the property at $90,000. For comparison purposes, Mr. Donahue noted that this is considerably less than if the City had a project and had to pay relocation costs and other associated development costs. Mr. Donahue stated this is a key parcel for any future redevelopment in the area. He proposed to demolish the dwelling and leave the site vacant at this time. He explained that it would be costly to bring the structure up to code. Councilmember Enck clarified that the City desires to acquire the property through the scattered site housing program since it is a access and safety issue for city services (snowplowing, emergency response). The EDA directed staff to prepare a purchase .agreement for sale of the property. 7180 42ND AVENUE TIF ASSISTANCE Item 8 President Erickson introduced for discussion Item 8, Discussion Regarding Request for Tax Increment Financing Assistance for Car-X/PUD Development at 7180 42nd Avenue North. Mr. Donahue stated David Lasky, owner of the property at 7180 42nd Avenue, has requested consideration of $200,000 in tax increment financing assistance for a proposed Car-X/PUD at the northeast corner of 42nd and Nevada Avenues. He stated Mr. Lasky has submitted an application to the Planning Commission for the Car-X facility. Commissioner Enck pointed out that the reasons the EDA was supportive of providing assistance for the Gill Brothers Funeral Chapel project was because it involved city-owned property, the property was difficult to develop due to its unique shape, and it met the goals of the 42nd Avenue Redevelopment Plan. Commissioner Enck stated he would favor an upgrade to 42nd Avenue but is not interested in spending funds for an auto-oriented use. President Erickson emphasized that the parcel is prime property on 42nd Avenue and he would prefer a proposal which includes the entire property and perhaps even demolishing the existing structure to create a larger buildable space. New Hope EDA Page 3 Commissioner Enck expressed an interest in a project which would also include the two buildings to the east of the 42nd/Nevada property. October 9, 1995 ADJOURNMENT Commissioner Enck asked the City Attorney to advise the EDA of legal issues pertaining to a moratorium of auto-related uses for this property, Mr. Donahue stated there are storm water problems on the site and staff may make a future requestto use a small amount of tax increment funds to correct problems on the rear of the property since it involves more than one property, The EDA declined interest in utilizing tax increment financing for an auto- oriented use since an auto-oriented use is generally not compatible with the 42nd Avenue Redevelopment Plan goals and objectives. Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:31 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 4 October 9, 1995 Approved EDA Minutes Meeting #1 7 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 November 13, 1995 CALL TO ORDER ROLL -CALL APPROVE MINUTES TIF DISTRICT Item 4 EDA RESOLUTION 95-22 Item 4 ADJOURNMENT President Erickson called the meeting of the Economic Development Authority to order at 8:58 p.m. Present: Absent: Staff Present: Erickson, Enck, Otten, Wehling LaVine Norby Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Otten, seconded by Commissioner Wehling, to approve the EDA minutes of October 9, 1995. Voting in favor: Erickson, Enck, Otten, Wehling; absent: Norby. Motion carried. President Erickson introduced for discussion Item 4, Resolution Awarding Contract for the Construction of a Handicap Accessible Twinhome at 6073- 6081 Louisiana Avenue North (Improvement Project No. 519). Mr. Donahue reported the Iow bidder is Michlitsch Builders for 8199,900. Commissioner Otten inquired whether the City has utilized this contractor in the past. Mr. Donahue stated the builder has bid on prior projects within the City and although the City has not utilized them in the past, Michlitsch Builders is very reputable. Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION AWARDING THE CONTRACT FOR THE CONSTRUCTION OF A HANDICAP ACCESSIBLE TWIN HOME AT 6073- 6081 LOUISIANA AVENUE NORTH, NEW HOPE, MINNESOTA (IMPROVEMENT PROJECT NO. 519)". The motion for the adoption of the foregoing resolution was seconded by Commissioner Wehling and upon vote taken thereon the following voted in favor: Erickson, Enck, Otten, Wehling; and the following voted against the same: None; Absent: Norby; whereupon the resolution was declared duly passed and adopted, signed by the President which was attested to by the Executive Director. Motion was made by Commissioner Wehling, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 8:59 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page I November 13, 1995 Approved EDA Minutes Meeting #17 CITY OF NEW HOPE 440! XYLON AVENUE NORTH ItENNEPIN COUNTY, MINNESOTA 55428 November 27, 1995 CALL TO ORDER ROLL CALL APPROVE MINUTES AUTOHAUS UPDATE Item 4 President Erickson called the meeting of the Economic Development Authority to order at 9:26 p.m. Present: Absent: Staff Present: Erickson, Enck, Wehling Norby, Otten Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Wehling, seconded by Commissioner Enck, to approve the EDA minutes of November 13, 1995. All present voted in favor. Motion carried. President Erickson introduced for discussion Item 4, Update on Autohaus Site Improvements, 7709 42nd Avenue North (Improvement Project No. 467). Mr. Donahue stated Autohaus did not deliver the revised plans in sufficient time for staff to analyze them. It was the consensus of the EDA to postpone discussion until a future meeting. Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:27 p.m. Respectfully submitted, Valerie Leone City Clerk New Hope EDA Page 1 November 27, 1995 CITY OF NEW HOPE 4401 XYLON AVENUE NORTH HENNEPIN COUNTY, MINNESOTA 55428 Approved EDA Minutes Meeting//19 December 11, 1995 CALL TO ORDER President Erickson called the meeting of the Economic Development Authority to order at 8:51 p.m. ROLL CALL APPROVE MINUTES Present: Erickson, Enck, LaVine Norby, Otten, Wehling Staff Present: Sondrall, Hanson, Donahue, Leone, McDonald, Bellefuil Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to approve the EDA minutes of November 27, 1995. Voting in favor: Erickson, Enck, Wehling;. Abstained: Norby, Otten; Absent: None; Motion carried. IMP. PROJECT 467 Item 4 President Erickson introduced for discussion Item 4, Update on Autohaus Site Improvements, 7709 42nd Avenue North (Improvement Project No. 467). President Erickson suggested that the item be continued to a later date as Tom Boettcher is out of town tonight. MOTION Item 4 Motion was made by Commissioner Enck, seconded by Commissioner Wehling, to continue this item until the January 22, 1996 meeting. All present voted in favor. Motion carried. IMP. PROJECT 533 Item 5 President Erickson introduced for discussion Item 5, Resolution Approving Right of First Refusal for Acquisition of Homeward Bound Property at 4741 Zealand Avenue North (Improvement Project No. 533). The EDA has indicated an interest in the use of the property at 4741 Zealand Avenue North in the event that it is sold by Homeward Bound and the EDA has been working with representatives from North Ridge/ CareBreak for the possible location of an adult day care facility at the site. President Erickson provided an update on the property. He stated the property has been listed for sale. Representatives of CareBreak and House of Hope Lutheran Church may be interested in leasing the property if the City purchased it. EDA RESOLUTION 95-23 Item 5 Commissioner Enck introduced the following resolution and moved its adoption: "RESOLUTION APPROVING RIGHT OF FIRST REFUSAL FOR ACQUISITION OF HOMEWARD BOUND PROPERTY AT 4741 ZEALAND AVENUE NORTH." The motion for adoption of the foregoing resolution was seconded by Commissioner Otten, and upon vote being taken thereon the following voted in favor thereof: Erickson, Otten, Enck, Wehling, Williamson; and the following voted against the same: None; Absent: None; whereupon the resolution was declared duly passed and adopted, signed by the president which was attested to by the executive director. IMP. PROJECT 474 Item 6 New Hope EDA Page I President Erickson introduced for discussion Item 6, Discussion Regarding Lease Between Phoenix Manufacturing Corporation and the EDA for City- December 11, 1995 ADJOURNMENT Owned Building at 7528 42nd Avenue (Improvement Project No. 474). President Erickson stated currently the lease rental rate with Phoenix Manufacturing is $20,020 which covers the real estate taxes. Staff is recommending increasing the rental rate to market rate conditions and is seeking EDA's direction. Mr. Donahue indicated that staff has researched industrial building rental rates. He pointed out that prior to any new agreement, it is necessary to determine whether the building meets city code. President Erickson pointed out that this may be one way to recover the cost of demolishing the building which is estimated at $30-40,000. The EDA directed the City Manager to proceed with a developing a proposal. Motion was made by Commissioner Norby, seconded by Commissioner Enck, to adjourn the meeting. All present voted in favor. The New Hope EDA adjourned at 9:02 p.m. Respectfully submitted, Valerie Leone City_ Clerk New Hope EDA Page 2 December 11, 1995